Introduction to fundamental analysis

There are two main types of analysis on the online forex trading currency market Forex:fundamental and technical analysis.

In simple terms, fundamental analysis - an analysis of economic and political conditions that may affect the price level. Forex traders using this type of analysis rely on news about the state of the economy, politics, the level of inflation, interest rates and unemployment.

Having a common picture Forex, traders often transferred to the technical analysis, in order to plan entry and exit their trades.

Forex market in many ways resembles the other markets and is subservient to the influence of the laws of supply and demand, which also dictated by economic conditions.

National governments publish a variety of economic indicators, which are considered the main features of the economic health of the country, that is, all sectors of its economy. Virtually all economic indicators go out once a month, some once a week.

The main indicators in the Forex market is the data of the International Trade Commission, and interest rates, but traders use the same consumer price index, the index of industrial prices, the index of expectations of purchasing managers and retail sales.